Workshop Report HIV/AIDS and Microinsurance in Africa

This report presents discussions and outcomes of the workshop HIV/AIDS and Microinsurance in Africa. The workshop discussed:

• The effect of HIV/AIDS on the health situation;
• The resultant change in the market place of MFIs and microinsurance companies (MICs);
• The demand for financial products;
• The roles of MFIs and MICs:
  • Contributing to poverty alleviation, reduced vulnerability and economic empowerment of women;
  • Providing access to health care via insurance products.

The workshop also discussed the following strategies for MFIs and MICs to deal with HIV/AIDS:

• Prevention strategies;
• Product adjustments;
• Introduction of:
  • New products other than insurance;
  • Insurance services.

The workshop:

• Highlighted the advantages of microinsurance;
• Distinguished the four main categories of insurance products;
• Focused on the relevance of health and life insurance in the face of HIV/AIDS;
• Discussed the barriers to health insurance.

The report lists the following lessons learned:

• Product design should be on the basis of market research;
• Products should be kept simple;
• Group-based products decrease adverse selection;
• Price premium should be set by the insurer;
• Staff training, client education and marketing is necessary for sales growth;
• Computerization is necessary for data mining and efficiency.

The report concludes by discussing the future, stressing the need for consorted efforts among MFIs, HIV/AIDS organizations, insurance companies, clients, health service providers and technical assistance providers in order to gain a foothold on the HIV/AIDS problem.